In a Tuesday report, lead analyst Low Pei Han says in spite of the lower fair value, she sees a good upside to the revised fair value given YZJ’s recent decline in share price, which has fallen by 34% YTD after gaining about 80% in 2017 and hence warrants a re-rating.
SINGAPORE (June 12): OCBC Investment Research is upgrading its call on Yangzijiang Shipbuilding (YZJ) to “buy” from “hold” previously with a lower fair value estimate of $1.18 from $1.22 before.
The lower fair value comes after updating its SOTP valuation with a 0.65 times P/B for the group’s held-to-maturity assets, which represents a discount to the Chinese banks that now trading at about 0.75 times book.
